Question

CardioGood Fitness is a developer of high-quality cardiovascular exercise equipment. The company looks to increase the sales of its treadmill products and has hired The AdRight Agency, a small advertising firm, to create and implement an advertising program. CardioGood Fitness sells three different lines of treadmills: a. The TM195 is an entry-level treadmill with fewer programs and features. It is suitable for individuals who thrive on minimal programming and the desire for simplicity. The TM195 sells for $1,500. b. The middle-line TM498 adds to the features of the entry-level model two user programs and up to 15% elevation upgrade. The TM498 is suitable for individuals who are walkers at a transitional stage from walking to running or midlevel runners. The TM498 sells for $1,750. c. The top-of-the-line TM798 has more features than the other models. This model is designed to handle rigorous, frequent running; the TM798 is therefore appealing to someone who is a power walker or a runner. The selling price is $2,500. As a first step, the market research team at AdRight is assigned the task of identifying the profile of the typical customer for each treadmill product offered by CardioGood Fitness. The team decides to collect data on individuals who purchased a treadmill at a CardioGood Fitness retail store during the prior three months. The team identifies the following customer variables to study: product purchased—TM195, TM498, or TM798; gender; age, in years; education, in years; marital status, single or partnered; annual household income ($); usage, number of times the customer plans to use the treadmill each week; miles, mean number of miles the customer expects to walk/run each week; and Fitness, self-rated fitness on a 1-to-5 scale (where 1 is poor shape and 5 is excellent shape). a. For each of the following variables in the dataset, determine whether the variable is categorical or numerical. If the variable is categorical, determine whether the variable is nominal or ordinal. If the variable is numerical, determine whether the variable is discrete or continuous. i. Education ii. Usage iii. Miles iv. Fitness b. Build three (3) contingency tables based on total percentages for gender, marital status and fitness level: i. One for the model TM195 ii. One for the model TM498 iii. One for the model TM798 c. Build three (3) contingency tables showing the average of annual household income by gender, marital status and fitness level i. One for the model TM195 ii. One for the model TM498 iii. One for the model TM798 d. Based on parts b) and c), describe the features of the typical customer for each treadmill product i. Features typical customer TM195 ii. Features typical customer TM498 iii. Features typical customer TM798.

Answer 1